Daiichi Life to acquire stake in Union Mutual Fund

SHARE

ARTICLE

Daiichi Life Holdings, a Japanese life insurance company, has acquired a 39.62% stake in Union Mutual Fund. Union Mutual Fund is owned by public sector Union Bank. Post the acquisition, Daiichi will appoint one nominee director on the board of the AMC. Union Mutual Fund would now be co-sponsored by Union Bank of India and Dai-ichi Life.

Union Mutual Fund was launched in 2009. In April 2017 it ranked 29th among India’s (currently 41 odd) AMCs them by assets under management (AUM). As of March 2018, it had an AUM of Rs 4,305 crore. The fund house was initially launched in association with Belgian asset manager, called KBC. However, KBC exited from the joint venture in 2016 selling its stake to Union Bank.

Union Bank also partners with Daiichi Life in Star Union Daiichi Life Insurance. Daiichi Life has a 45.94% stake in the company with Union Bank holding a 25.10% and Bank of India holding another 28.96%.

Two other AMCs may see significant changes in the coming months. Global asset manager Blackrock has announced its exit from DSP Blackrock Mutual Fund. It is reported that IDFC Mutual Fund is up for sale with players like Blackrock and Mirae are in the race to acquire it.